There is massive volume in the GE June $2.50 puts this afternoon. At $0.30 each there are major market participants betting on a potential GE bankruptcy. These put buyers are essentially betting on a GE BK as the puts would not be in the money over $2.20. We would likely have to redefine the word “fear” if this were to occur….
Related:
https://pragcap.com/ge-is-not-aaa
https://pragcap.com/how-bad-are-ges-woes
https://pragcap.com/can-ge-finance-survive
Bloomberg has more on the story here.
Video Update:
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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